Financial Data and Key Metrics Changes - The company achieved a record $1 billion in total leasing completed in 2024, marking a significant increase in leasing activity [6][10] - Core FFO per share grew by 6% year-over-year in the fourth quarter, indicating strong financial performance [8][39] - The leverage ratio was reduced to 4.8 times by year-end, down from 6.2 times, enhancing the company's financial stability [7][32] Business Line Data and Key Metrics Changes - The 0 to 1 megawatt plus interconnection segment saw a record $76 million in bookings for the fourth quarter, a 16% sequential increase [14][35] - Lease renewal activity approached $1 billion in 2024, with cash rents rolling up by an average of 9% [10][37] - The company expanded its total portfolio capacity by over 200 megawatts in 2024, with a development pipeline that is 70% pre-leased [11][41] Market Data and Key Metrics Changes - Strong growth was observed in both the Americas and EMEA regions, with record bookings achieved in both areas [14][15] - The backlog of booked but not yet billed leases increased to approximately $800 million at year-end, providing strong revenue visibility for 2025 and beyond [18] - The company reported a healthy mix of various-sized deployments within the 0 to 1 megawatt business, reflecting a diverse customer base [15][87] Company Strategy and Development Direction - The company aims to enhance its customer value proposition and diversify capital sources to support growth and reduce leverage [9][12] - New products and services were rolled out, including high-density Colo 2.0% and private AI Exchange, to meet evolving customer needs [11][12] - The company is focused on organic development opportunities while maintaining flexibility for potential inorganic activities [81][83] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the robust demand for data center capacity, particularly driven by AI and digital transformation [13][20] - The company anticipates continued strong growth in core FFO and revenue, with guidance for 2025 indicating a 5.7% year-over-year growth [46][47] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to capitalize on future opportunities [34][45] Other Important Information - The company is committed to sustainability, with initiatives including the construction of a solar power plant and AI-driven water conservation solutions [26][30] - Digital Realty was awarded NAREIT's Leader in the Light award for the eighth consecutive year, reflecting its commitment to sustainability [31] Q&A Session Summary Question: Insights on DeepSeek and its impact on Digital Realty's outlook - Management noted that the demand for AI infrastructure remains strong, with significant investments expected from top customers [55][56] Question: Cash renewal outlook and potential for exceeding guidance - Management indicated that while the guidance for cash renewals is set at 4% to 6%, there is potential for outperformance similar to the previous year [63][64] Question: Future bookings expectations - Management acknowledged the lumpiness of bookings but expressed confidence in maintaining a strong pipeline, particularly in the 0 to 1 megawatt segment [66][71] Question: Factors influencing core FFO growth - Management highlighted that while mid-single-digit growth is expected for 2025, there are opportunities for acceleration in subsequent years due to a strong backlog and development pipeline [75][78] Question: Characteristics of the under 1 megawatt business - Management noted broad-based momentum in the under 1 megawatt segment, with strong demand from both enterprise and service provider customers [81][87] Question: Capital recycling and joint ventures - Management provided a breakdown of expected capital recycling activities, emphasizing a focus on non-core asset dispositions and private capital expansion [125][126] Question: Potential derailments to growth thesis - Management acknowledged that while demand is strong, execution in filling vacancies and managing large capacity blocks will be critical for maintaining growth [129][130]